CBRE Group, Inc. (CBRE)

Sector: Real Estate|Industry: Real Estate Services|Market Cap: $38.78B|Employees: 130K


CBRE Group, Inc. is the world's largest commercial real estate services and investment firm, providing integrated solutions to real estate investors and occupiers across more than 100 countries. They are global market leaders in most lines of business and drive growth by bundling services, helping clients optimize costs, value, and workplace experiences. CBRE's primary revenue streams are derived from advisory services, global workplace solutions, and real estate investments.

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  2. Company Profile

Business Summary

CBRE Group, Inc. is the world's largest commercial real estate services and investment firm. The company provides integrated solutions to real estate investors and occupiers in more than 100 countries. CBRE is a global market leader in most of its lines of business, with a focus on diversification and growth across geographies, clients, property types, and services. The company's platform includes research, marketing, data, and technology, and its client base includes nearly 90% of Fortune 100 companies.

Key Statistics

  • Employees: 130,000+ (as of December 31, 2023)
  • Geographic Footprint: More than 100 countries
  • Headquarters: Dallas, Texas
  • Founded: 2001
  • Number of locations/facilities: 678 offices (excluding affiliates)
  • Revenue: $31.9 billion (FY2023)
  • Market Capitalization: $24.2 billion (as of June 30, 2023)
  • Key Subsidiaries/Brands: CBRE Investment Management, Trammell Crow Company, Telford Homes, Turner & Townsend

Leadership

  • CEO: Robert E. Sulentic
  • CFO: Emma E. Giamartino
  • Board Chair: Robert E. Sulentic
  • Other Key Executives: Lindsey S. Caplan (Chief Accounting Officer)

Key leaders have extensive experience in real estate and financial management.

Key Financial Metrics

  • Annual Revenue: $31.9 billion (FY2023)
  • Net Income: $986 million (FY2023)
  • Market Cap: $24.2 billion (as of June 30, 2023)
  • Total Assets: $22.5 billion (as of December 31, 2023)
  • Employees: 130,000+ (as of December 31, 2023)
  • Key Financial Highlights: Net revenue decreased by 2.7%, while resilient business lines grew by 10%. Transactional revenue decreased by 21%.

Products and Services

CBRE provides a comprehensive range of services, including:

  • Advisory Services: Property leasing, capital markets (property sales and mortgage origination), mortgage servicing, property management, and valuation.
  • Global Workplace Solutions (GWS): Integrated facilities management and project management solutions for major occupiers of commercial real estate.
  • Real Estate Investments (REI): Real assets development, investment management, and operation.

Key Business Segments

The company operates through three main business segments:

  • Advisory Services: Provides a comprehensive range of services globally, including property leasing, capital markets, mortgage servicing, property management and valuation.
  • Global Workplace Solutions: Provides integrated facilities management and project management solutions for major occupiers of commercial real estate.
  • Real Estate Investments: A large real assets developer, investor and operator, comprised of investment management and real estate development.

Business Strategy

CBRE is focused on cementing its leadership position in each of its businesses with a strategy that achieves diversification and growth across four dimensions: geographies, clients, property types and services. The company is committed to deploying its resources and capital in parts of its business that have secular tailwinds and/or provide cyclical resilience. Key strategic initiatives include investments in global project management and flexible office platforms, as well as increased focus on high-growth geographies and asset classes. The company's platform, combined with its balance sheet strength, provides access to top talent and compelling growth opportunities.

Industry Context

CBRE operates in the commercial real estate services and investment industry. The company is the market leader in most of its business lines, but faces competition from globally diversified real estate services firms and business-line-specific specialists. Key market trends affecting the business include macroeconomic conditions, interest rate changes, and the demand for commercial real estate. The company's competitive advantages include its scale, depth of expertise, technology, and data-led insights.

  • Market Position: World's largest commercial real estate services and investment firm.
  • Key Competitors: JLL, Cushman & Wakefield, Colliers International Group Inc., Marcus & Millichap, Inc., Newmark Group Inc., Savills plc, and Walker & Dunlop, Inc.
  • Industry Trends: Economic conditions, interest rate changes, and demand for commercial real estate.

Risk Factors

  • Market Risks: Economic slowdowns, liquidity constraints, interest rate increases, and declines in real estate values.
  • Operational Risks: Currency fluctuations, international social, political and economic risks, and competition.
  • Financial Risks: Credit cost and availability, interest rate risk, and debt instrument restrictions.
  • Regulatory Risks: Compliance with laws and regulations related to global operations, data privacy, and environmental matters.
  • Cybersecurity Risks: Threats to information technology networks, including misappropriation of assets and sensitive information.

Last Updated

2024-02-20

(Generated from latest 10-K filing)